Thank you, Peter. I would like to pursue this value chain issue, as most of the world`s value chains are deeply rooted in Asia, with China at the centre of the concerns. The Trump administration has talked about getting value chains to withdraw China, perhaps to return to the United States. Can you therefore say a little more about the impact of the RCEP agreement on value chains and on this objective of the current US administration? The Peterson Institute for International Economics argues that “the ISDS provisions in the TPP are a significant improvement over previous agreements.”  PiIE notes that the ISDS mechanism in the TPP complies with environmental, health and safety rules; Ensure transparency in litigation procedures and eliminates shopping in the forum.  PIIE asserts that some of the innovations contained in the TPP`s ISDS rules “are generally rejected by the U.S. business community.”  Piie asserts that ISDS rules are necessary because they stimulate investment: “Empirical evidence has shown that contracts, including these provisions, have a positive impact on foreign direct investment flows between signatory countries.”  PIIE challenges the assertion that ISDS “lacks integrity to arbitrators” and finds that arbitrators take an oath of impartiality and elect both parties in a case to arbitrators.  PiIE agrees that secrecy has gone too far in many ISDS cases, but notes that “TPP negotiators have opened up greater transparency to these criticisms” and ISDS cases.  Plummer, campus director at Johns Hopkins University in Bologna, Italy, says the deal is important because it will spark investor confidence. This week, 15 countries in Asia and the Pacific joined the Comprehensive Regional Economic Partnership (RCEP), which is probably the largest free trade agreement in history. To explain the origins of the agreement and explain the impact it will have on economic integration in Asia, David Dollar is accompanied by Peter Petri, a senior non-resident member of Brookings and professor of international finance at Brandeis International Business School. The agreement excludes the United States, which withdrew from an Asia-Pacific trade pact in 2017.
Analysts say the RCEP does not set immediate or revolutionary rules that will govern countries on sensitive issues such as intellectual property, which limits its importance. Many details of the agreement – and when certain points will be implemented – are not yet known. Still, many say the deal will cement the acceleration of international trends – the attachment of Northeast Asian economic powers and fast-growing Southeast Asian hotbeds like Vietnam, which increasingly offers electronics production and offers huge market opportunities.